India should tap USD 75 billion new molecule market: Experts

Panaji, May 22: With skills in biotechnology and low cost human resources in drug manufacturing, India should explore the USD 75 billion offshore market potential in innovator life science molecules through global partnerships in different pharmaceutical applications, business experts are of the view.

Participating in the two-day global partnership summit in South Goa today to evolve growth strategies for Indian companies, for exploring multi-million USD market in new drug discovery, experts said the key challenges included availability of sufficient talent to cope with the demand and productivity and efficiency parametres.

With India meeting only 50 per cent of the manpower needs of the outsourcing foreign companies, they start scouting for talent in neighbouring China, Malaysia, Singapore and even New Zealand, with the demand jacking up faster at 25 per cent per annum, according to Frost&Sullivan president Aroop Sutshi.

Organised under the aegis of Frost and Sullivan, world leaders in research, training, consulting and corporate strategy who are participating in the summit - 'Opportunities in Life Science Molecules', are expected to help Indian industries identify opportunities unfolding in the field, Mr Sutshi said.

He said the global life sciences industry is on the anvil of 'interesting' times, with a future full of unprecedented levels of collaboration, particularly with the US, Europe and Japan that were looking for competent Indian partners who could deliver goods.

With global research and development spending outsourced to India touching USD 500 million, and revenues for custom synthesis and manufacturing expected to grow to USD 168 billion by 2009, there is a lot of opportunity for Indian players to enter into partnerships with global innovator life science companies, he said.

Recognising this fast-growing business paradigm by organising the summit, Frost&Sullivan is trying to alter the way the global life science industry does business, by helping delegates identify the immense opportunities that await, as a result of this unfolding, he said.

Mr Sutshi had earlier introduced the subject, followed by a presentation on the 'Indian Life Science Industry: An Insight into Current and Future Developments' by Jupiter Biosciences Chairman and Managing Director Venkat Kolavakolanu, in the inaugural session.

Prominent delegates who were present in the summit included those from the US, Germany, UK and Japan, besides the representatives of the major global pharmaceutical companies like Pfizer and Glaxo Smithcline and others, besides Indian delegates eager to forge partnerships.

The quantum of money foreign gaints outsourcing molecular research in India is likely to double to USD 1.5 billion in the coming five years, because the foreign companies could not afford spending USD 850 million to 1 billion on each blockbuster drug. On the other hand, apart from being cost effective, Indian companies had developing capabilities at a ''fraction of the cost'' with wide open opportunities for partnerships in the form of joint ventures for more value added stuff, Mr Sutshi claimed.

At present, India has an investment of USD 2 to 2.5 billion in the new molecule market, witnessing about 15 per cent annual growth, as against USD 75 billion abroad involving 70 per cent of the muilti-national companies.

About 50 per cent of the drug companies engaged in new drug research are located in Bangalore while the emerging cities include Hyderabad and Delhi, with respective Governments coming out with attractive policies combined with incentives and tax holidays.

Goa, with its immense potential and proximity to financial hub like Mumbai, could take the lead in locating drug research by opening biotechnology parks, for which the Government had to take a bold initiative with suitable strategies to attract foreign investments, Mr Sutshi said.

India could become a major hub even for pre-clinical and clinical trials offshoring, apart from drug discovery and development services with its varied experience and manpower availability passing out of the IITs and universities with the CSIR backbone, Jupiter Biosciences Limited CMD K R Venkat said.

About 40 per cent of the money spent on research and development by the foreign drug gaints goes for pre-clinical and clinical trials with immediate potential for India, leave alone opportunities in contract research and new molecule research.

On the rapid advances in Indian pharmaceuticals such as Dr Reddy Labs and Ranbaxy, Mr Venkat said several of the Indian drugs research companies were poised to become global gaints at par with those in the US and Europe even as they started acquiring foreign companies of late.

The essential drugs like those in thrombolites are available rarely but at exhorbitant cost, and could be made available in India at nominal prices if the indigenous companies forge partnerships with the foreign gaints, he said.

Pfizer (US) Business Development Senior Director Dr Rajiv Shukla later made a presentation on - contract research and manufacturing services: opportunities from a partner/customer perspective.

This was followed by a talk on 'Outsourcing to Expand Drug Discovery Capacity - An Industry Imperative' by Pharmacopoeia (US) CSO Dr David Floyd.

Success stories from Japan, China, Latin America and opportunities for alliances in pharmaceutical industry would also be discussed with participating experts.

The organisers expect felicitating several joint venture partnerships with the foreign drug manufacturers at the end of the summit.

UNI